CSLB CONTRACTOR'S LAW & BUSINESS EXAM NEWEST
(ACTUAL 2025/2026 ) WITH COMPLETE QUESTIONS AND
ANSWERS VERIFIED/GRADED A+
Construction or alteration of any building, highway, excavation,
or other structure in the State of California requires a
contractor's license if the total cost of one or more contracts
on the project is: - ---Answers---$500 or more in labor and
materials.
A contractor meets Mr. Jones at his home to discuss
remodeling. The contractor and Mr. Jones sign a contract that
includes a three-day cancellation form. After the contractor
leaves, Mr. Jones decides not to have the work done. Instead
of using the cancellation form, Mr. Jones sends the contractor
a letter by first-class mail stating that he is canceling the
contract. Is Mr. Jones' cancellation effective? - ---Answers---
Yes. Mr. Jones' letter does cancel the contract because it
indicates his intention not to be bound by the contract.
As part of the safety training process, contractors's
supervisors are required to conduct "toolbox" or "tailgate"
safety meetings. How often must these meetings be held. - ---
Answers---At least once every ten working days.
Which of the following statements about home improvement
laws is ("most correct")
,A. A subcontractor may give a salesperson a bonus.
B. A general contractor may give a salesperson a bonus.
C. A subcontractor may not give the general contractor a
bonus.
D. The homeowner may give the salesperson a bonus. - ---
Answers---The homeowner may give the sales person a
bonus.
As required by the Immigration Reform and Control Act, all
employees hired on or after November 7, 1986 must complete
what form to verify their employment eligibility status? - ---
Answers---I-9
A contractor entered into a home improvement contract for
more than $500 with Mrs. Swenson to remodel her kitchen
and bathroom. The contract calls for a down payment before
work is to begin. According to the Business and Professions
Code, how much may the contractor accept from Mrs.
Swenson as down payment for the work? - ---Answers---The
down payment is limited to $1,000 or 10% of the total price,
which ever is less.
Some counties have an additional sales tax added to the base
rate. Which of the following is a correct statement regarding
this additional tax?
A. This additional tax does not apply to contractors.
,B. You do not have to pay this additional tax if your home office
is in another county.
C. You may pay the additional tax charged in your county if the
rate is lower than the county where the materials were
purchased.
D. You must pay the additional tax in the county where the
materials were purchased. - ---Answers---You must pay the
additional tax in the county where the materials were
purchased.
A notice of completion must be recorded within: - ---
Answers---A notice of completion must be recorded within 10
days after work is completed.
Insured employers must report every work-related illness or
injury to their workers' compensation carrier within _____ of
the incident.
A. 24 hours
B. 2 days
C. 5 days
D. 10 days - ---Answers---Any work related illness or injury
must be reported to the workers compensation insurance
company within 5 days.
, Which of the following may NOT be deducted from an
employee's paycheck?
A. SDI
B. FICA
C. Medicare Tax
D. Workers' compensation insurance premiums - ---Answers-
--Workers compensation insurance premiums
Who pays FICA? - ---Answers---For FICA, it is 50% the
employer and 50% the employee.
If, during excavation, you unearth human remains or burial
artifacts at a construction site, what should you do? - ---
Answers---Stop work immediately at that site and any there
nearby area that may have remains.
Who would be held responsible if a contractor completes a
project according to plans and later discovers that there is a
building code violation? - ---Answers---Both the contractor
and the architect would be liable.
A(n) _____ summarizes revenues, cost of sales, and operating
expenses over a period of time.
A. Profit plan
(ACTUAL 2025/2026 ) WITH COMPLETE QUESTIONS AND
ANSWERS VERIFIED/GRADED A+
Construction or alteration of any building, highway, excavation,
or other structure in the State of California requires a
contractor's license if the total cost of one or more contracts
on the project is: - ---Answers---$500 or more in labor and
materials.
A contractor meets Mr. Jones at his home to discuss
remodeling. The contractor and Mr. Jones sign a contract that
includes a three-day cancellation form. After the contractor
leaves, Mr. Jones decides not to have the work done. Instead
of using the cancellation form, Mr. Jones sends the contractor
a letter by first-class mail stating that he is canceling the
contract. Is Mr. Jones' cancellation effective? - ---Answers---
Yes. Mr. Jones' letter does cancel the contract because it
indicates his intention not to be bound by the contract.
As part of the safety training process, contractors's
supervisors are required to conduct "toolbox" or "tailgate"
safety meetings. How often must these meetings be held. - ---
Answers---At least once every ten working days.
Which of the following statements about home improvement
laws is ("most correct")
,A. A subcontractor may give a salesperson a bonus.
B. A general contractor may give a salesperson a bonus.
C. A subcontractor may not give the general contractor a
bonus.
D. The homeowner may give the salesperson a bonus. - ---
Answers---The homeowner may give the sales person a
bonus.
As required by the Immigration Reform and Control Act, all
employees hired on or after November 7, 1986 must complete
what form to verify their employment eligibility status? - ---
Answers---I-9
A contractor entered into a home improvement contract for
more than $500 with Mrs. Swenson to remodel her kitchen
and bathroom. The contract calls for a down payment before
work is to begin. According to the Business and Professions
Code, how much may the contractor accept from Mrs.
Swenson as down payment for the work? - ---Answers---The
down payment is limited to $1,000 or 10% of the total price,
which ever is less.
Some counties have an additional sales tax added to the base
rate. Which of the following is a correct statement regarding
this additional tax?
A. This additional tax does not apply to contractors.
,B. You do not have to pay this additional tax if your home office
is in another county.
C. You may pay the additional tax charged in your county if the
rate is lower than the county where the materials were
purchased.
D. You must pay the additional tax in the county where the
materials were purchased. - ---Answers---You must pay the
additional tax in the county where the materials were
purchased.
A notice of completion must be recorded within: - ---
Answers---A notice of completion must be recorded within 10
days after work is completed.
Insured employers must report every work-related illness or
injury to their workers' compensation carrier within _____ of
the incident.
A. 24 hours
B. 2 days
C. 5 days
D. 10 days - ---Answers---Any work related illness or injury
must be reported to the workers compensation insurance
company within 5 days.
, Which of the following may NOT be deducted from an
employee's paycheck?
A. SDI
B. FICA
C. Medicare Tax
D. Workers' compensation insurance premiums - ---Answers-
--Workers compensation insurance premiums
Who pays FICA? - ---Answers---For FICA, it is 50% the
employer and 50% the employee.
If, during excavation, you unearth human remains or burial
artifacts at a construction site, what should you do? - ---
Answers---Stop work immediately at that site and any there
nearby area that may have remains.
Who would be held responsible if a contractor completes a
project according to plans and later discovers that there is a
building code violation? - ---Answers---Both the contractor
and the architect would be liable.
A(n) _____ summarizes revenues, cost of sales, and operating
expenses over a period of time.
A. Profit plan
